Integrated Trading & Clearing (ITaC) Dress Rehearsal Feedback

Transcription

1 Integrated Trading & Clearing (ITaC) Dress Rehearsal Feedback 16 March

2 Agenda ITaC - What s changing? ITaC Project Update High Level Timelines and Key Dates Mandatory Market Dress Rehearsals General Questions? 2

3 3 ITaC What is Changing?

4 ITaC High Level Impact Summary Trading NEW CHANGED DECOMMISSIONED Connectivity and bandwidth requirements JSE Services Agreement (JSA) for connectivity to Production and Customer Test Service (CTS) services Intra-day risk monitoring including exposure thresholds Real time Drop Copy feed Copy to functionality of all orders and trades Real time Post Trade feed of all trades Enhanced trading functionality Intra-Day Trading Session Updates Pause session Off book and On Book Trades Quotes for Market Makers Circuit breakers - Dynamic and Static circuit breakers trigger Volatility Auctions Reference Data Enhanced Instrument Identification codes including ISIN and Unique Numeric ID Instrument mapping between old and new instrument codes - four character code will not be allocated to any new instruments that are listed or that are created as a result of corporate actions Firm and trader identification codes Enriched reference data files available via file transfer/download 4 EDM only intraday creation of anyday instruments Enhanced order types and ability to allow orders to live for more than one day Enhanced Stop and Stop Limit and Time in Force functionality Firm Login versus Trader login More specific Off Book trade reporting functionality with special trade types Improved consistent latency and performance throughput Dynamic Intraday auto-generation of option Strikes Authentication and access management managed via in-house front ends Enhanced trade cancellation and price adjust levels Indicative Auction Information published real-time during auction periods Multicast Protocol for all Market Data including via JSE London PoP/International access point Real time statistics and full market depth as well as top of book published realtime Data Agreements for new Trading and Information Subscriptions NUTRON front-end to be decommissioned by JSE clients to find replacement front-ends by engaging directly with software providers EDM Only Price band limits for On Book central order book trading no longer apply Dividend Future will no longer exist as the Dividend Neutral contract will now be one contract and the Journal transaction will be processed on this contract Global Market connectivity migrated from Equity Derivatives to Commodity Derivatives market in July 2017

5 ITaC High Level Impact Summary Market Data NEW CHANGED DECOMMISSIONED 5 Connectivity and bandwidth requirements JSE Services Agreement (JSA) for connectivity to Production and Customer Test Service (CTS) services JSE Data Agreement/schedules to be signed all data distributors including Shared Infrastructure providers Market Data fees Non Live Market Data Fundamental changes to Non Live Market Data FX data will move from being provided via IRC Data Records to new set of FX Data Records IR Derivatives data will continue to be provided via existing IRD Data Records 19 EDM Data Records will be made available 17 FX Data Records will be made available Web Reports A set of Web Reports will continue to be published on JSE website for General Public viewing Web reports will be provided in PDF form and most will be provided at midnight Web Reports will have same fields and same fields sequence as corresponding Data Records 10 EDM Web reports will be provided 9 FX Web Reports will be provided EDM and FX Non Live Market Data via NUTRON front-end to be decommissioned by JSE clients to find replacement front-ends by engaging directly with software providers and review new non-live data products available 2 current EDM Data Records will be discontinued 5 current EDM Web Reports will be discontinued 5 current FX Web Reports will be discontinued

6 ITaC High Level Impact Summary Post-trade Deal Management and Clearing NEW CHANGED DECOMMISSIONED 6 Connectivity (to trading system for on behalf activity) and Bandwidth requirements JSE Services Agreement (JSA) for connectivity to JSE production and Customer Test Service (CTS) services. JSE Data Agreement to access public market data Deal management Commissions functionality to replace Take-a-Turn Securities and FX collateral service that allows participants to pledge securities as collateral Intra-day risk monitoring service for real-time monitoring of risk including exposure thresholds and alerts JSE Rules and Directives relating to new, changed and removed services Reference Data Trading Member codes are being consolidated Instruments codes Dividend neutral contract positions to be held directly in dividend neutral contract Sub accounts new House suspense account (error account) Single end-of-day run across all markets with a 2-step clearing member balancing process EOD re-run process change Automated confirmation of balancing Collateral management part of the EOD process. Inclusion of pledged securities collateral information in BDA JSPAN Margining Methodology changes Pre-trade risk controls changes with some controls shifting to trading front-ends and some new controls in the Trading system Non-validation of accounts on trading system Price bands changes Automation of corporate actions Market Notices will no longer be issued for corporate action changes however information on treatment of derivatives positions as a result of corporate actions will be available on JSE website Global Market connectivity migrated from Equity Derivatives to Commodity Derivatives market Completed earlier in 2017 NUTRON front-end to be decommissioned by JSE clients to find replacement front-ends by engaging directly with software providers

7 7 ITaC Project Update

8 ITaC MCMT Status Update MCMT Milestones each subject to success of prior milestones Date Final Clearing Member code rollout 15 Jan 19 Jan Feb 2018 Unscripted testing for CMs 22 Jan 26 Jan 2018 N/A Revised Plan (as agreed with CMs) MCMT Cycle 1 29 Jan 09 Feb Feb 2018 (S/W readiness assessment) Code fix and deploy 12 Feb 16 Feb Feb 2 Mar 2018 MCMT Cycle 2 19 Feb 02 Mar Mar 16 Mar 2018 Code fix and deploy 05 Mar 09 Mar MCMT Cycle 3A 12 Mar 16 Mar MCMT Cycle 3B 19 Mar 23 Mar Code fix and deploy 26 Mar 29 Mar Mar 22 Mar 2018 Deploy code for MMDR - 19 Mar 22 Mar 2018 Easter 30 Mar 02 Apr 2018 MCMT Cycle 4 03 Apr 13 Apr 2018 MCMT Cycle 3 (3A& 3B) Code fix and deploy 16 Apr 20 Apr Apr 20 Apr 2018 MCMT Cycle 5 (if necessary) 23 Apr 04 May 2018 MCMT Cycle 4 Additional MCMT cycles will be considered post this

9 Mandatory Clearing Member Testing (MCMT) Status Update Primary project focus currently is clearing member testing in our MCMT environment Daily checkpoints held to assess the testing progress Despite challenges and defects identified, progress has been made Testing is achieving the objective to identify functional, technical or business process issues in the clearing member software and the JSE s real-time clearing system Tracking behind schedule and some of the challenges include: Set up and system configuration Client connectivity issues Reference data set up Defects in clearing member software Defects in JSE RTC software Outcome of this testing phase and plans for remaining phases will determine start of market wide MCMT (including trading members and other software providers) expected to be Cycle 4 (23 Apr 4 May) 9

10 ITaC Key Dates Date Milestone 24 Mar 2018 Mandatory Market Dress Rehearsal 3 14 Apr 2018 Mandatory Market Dress Rehearsal 4 12 May 2018 Targeted Go Live Weekend Mandatory Market Dress Rehearsal 4 28 May May Jun Jun 2018 Go Live Contingency 1 Optional Market Dress Rehearsal Go Live Contingency 2 Final Mandatory Market Dress Rehearsal TBC Targeted Go-Live Date * (project currently behind schedule and remaining MCMT cycles and Targeted Go-Live date will require confirmation with stakeholders) Clients must successfully pass 2 dress rehearsals to go-live Considering Participant Test Weekends (PTWs) to all as additional opportunities for testing by clients in the trading system JSE early deployment opportunities are planned as most of our new solutions are ready 10

11 11 Mandatory Market Facing Dress Rehearsals (MMDR)

12 Why are Dress Rehearsals necessary? Dress rehearsals are essential to confirm: Lessons learnt from previous project shortcomings e.g. Project DIS Clients requested more testing opportunities in production Your business operations will not be adversely impacted as you transition to your new chosen software solutions for the Equity Derivative and Currency Derivative Markets Prove your new chosen software solutions meet all your business and functional requirements Prove all access credentials ensure all authentication and permissions are correctly enforced/configured via your chosen software solutions Prove any downstream integration systems/solutions dependencies to ensure end to end functionality prior to go live and no disruption to your business Practice deployment and cut over activities of your solutions Prove your Firm s readiness for go-live to ensure you continue to operate successfully - familiarise yourself with your chosen solutions, front-ends 12

13 What should be tested during Dress Rehearsals? JSE will publish a dress rehearsal functional test worksheet to help you execute your testing Simulate a normal production business day in the production environment using your new chosen solutions Business and technical teams to familiarise themselves with your new solutions identify knowledge gaps and any additional training or education required for go-live Test all business processes impacted by your new solutions Test that your chosen solution(s) meets your business needs 13 Test what you do on a normal day Test any downstream integration solutions dependencies required for your successful business operations Execute a controlled set of scenarios (orders, trades, deal management functions etc.) to verify the outcome of the results on all screens, reports, downloads etc. This is not a HIGH VOLUME test the focus should be on verifying integrity and accuracy! Test that traders, back office and risk management teams are correctly authorised Confirm that your staff are trained and well positioned to continue operating post go-live familiarise yourself with your chosen solutions

14 Measuring Success of Dress Rehearsals Implement dress rehearsal functional test worksheet with pass/fail criteria to assist in confirming readiness Trading Connectivity and access credentials Order management, On Book trading and Off Book Trade Reports Trading Session changes User created instruments Market Data Connectivity and access credentials Successfully receive and process real-time multicast data and replay/recovery Process trading session changes published e.g. auction, uncrossing etc. Deal Management Connectivity and access credentials Perform deal management activities e.g. Assign, tripartite etc. Commission Clearing Receive and process trades and trade cancellations via real-time clearing Perform deal management activities e.g. assign, allocate, tripartite Capture commissions View positions and member client data Verify margins 14

15 Measuring Success of Dress Rehearsals Prior to the dress rehearsal - review the JSE known issues list (to be published next week) and that of your software provider Take ownership, be prepared test what you need for your business ONLY YOU know how your business operates Your dress rehearsal feedback is important to us ensure you provide feedback We will use clients feedback and JSE generated reports to assess overall dress rehearsal success Clients to complete dress rehearsal functional test worksheet and return to JSE - to be published 20 March 2018 JSE will generate dress rehearsal results reports (met/not met) Continue the open and honest general feedback its helps us to improve! 15

16 Participation in Dress Rehearsals 24 March 2018 This dress rehearsal is Mandatory for: All Trading Members that participate in the Equity Derivatives and Currency Derivatives markets regardless of how they access JSE trading and post trade services (test all applicable solutions) All software providers (trading, deal management and clearing) All Shared Infrastructure Providers (SIPs) This dress rehearsal is Optional for: Real-time Information subscribers that connect directly to the JSE Clearing Members (we would encourage Clearing Members to test and prove access to the new ITaC services) International Access Point clients (we would encourage these clients to test and prove access to the new ITaC services) 24 March 2018 is last opportunity for trading members to test with multiple software providers clients MUST finalise software and software vendor choice post this dress rehearsal Non Live Market Data subscribers do not participate in the dress rehearsal as they are participating in Non-Live Market Data User Acceptance Testing which commenced on 12 March

17 Participation in Dress Rehearsals 24 March 2018 All JSE user credentials required for go-live New Firm credentials New Trader IDs (including automated trading applications), TraderGroups and Branches New Trading and Market Data Gateway Comp IDs Real-Time Clearing User-ids Information Delivery Portal (IDP) credentials Not mandatory for every trader to participate, however ensure you have appropriate business representatives on site to signoff functionality and verify correct authorisation in JSE systems and your software Front -ends Test all connectivity (Login s) to JSE ahead of the dress rehearsal to avoid delays during the dress rehearsal Test your Trading Logons today Friday, 16 March 2018 to ensure correct passwords Test your Trading and RTC Logons - Friday, 23 March

18 Dress rehearsal preparations Verify your Trader Ids have been setup correctly in your software Compliance officers have the latest lists or these can be requested via Not all clients have completed a full impact analysis and dependency analysis of their systems URGENT to complete asap Ensure clear issue logging procedure for your team Ensure you have the support helpdesk contact details of your software provider for support during the dress rehearsals and log all software issues with them First line JSE support is the Client Service Centre - log all queries via to CustomerSupport@jse.co.za or call us on (011) Keep track of all actions in the event of a problem to assist with troubleshooting and to recreate the issue Read the following business functional documents and get a better understanding of the new systems: Volume 00D - Trading and Information Overview for Derivative Markets Volume E Derivatives Markets Trade Reporting Guidance Note Volume PT00 - Post-trade Services Overview (includes commissions solution) 18

19 Dress Rehearsal 24 March 2018 Test runs between 6h30 12h00 - technical teams be on site 6h30 7h00 Business users on site from 8am for start of trade reporting Monitor dress rehearsal status via this link: Define roles and responsibilities for your team members and what each is accountable for Traders: If you are not currently enabled to access a specific market YOU WILL NOT be able to access it during dress rehearsals. E.g. if you are not currently an FX dealer you cannot trade currencies Clearing back office staff will have a TraderID for every trading member that they clear for and it should be tested Familiarise yourself with the new systems and your new front-ends test, test and test some more Enablement cut-off date was Wednesday 9 March 2018 Be aware of the JSE published known issue list as well as that of your software provider 19

20 Dress Rehearsal Tracking Each JSE client has a dedicated JSE user readiness contact ( buddy ) don t know who your buddy is? Send an to ITaC@jse.co.za Your JSE buddy will contact your nominated key ITaC contact person (primary/responsible officers) to exchange contact details (by Thurs 22 March) this person is your escalation contact (if required) during the dress rehearsals If a more senior escalation contact is required, please contact Leanne Parsons, the JSE Executive Sponsor for ITaC via LeanneP@jse.co.za or via Client Service Centre (CSC) Monitor status updates via SMS for SMS updates: Send to ITaC@jse.co.za by Tuesday 20 March 2018 with: Firm Name Name & Surname Cell phone Number Address JSE will require your completed dress rehearsal functional test worksheet from the ITaC Responsible Officer to confirm results of the dress rehearsal - these to ITaC@jse.co.za 20

21 Mandatory Market Dress Rehearsal TAKE NOTE! Trading the order book will be empty for go-live and therefore for dress rehearsals too Trading enablements will be as at Friday, 16 March 2018 Instrument reference data will be as at 16 March 2018 adjusted for Currency Expiries on 19 Mar 2018 Full position take-on as at 20 March 2018 will be migrated for the dress rehearsal - Members to verify positions against own systems Only member clients that have been active over the past 2 years will be migrated to real-time clearing for the dress rehearsal Test intra-day user created instruments if you make use of this functionality 21

22 24 March 2018 Dress Rehearsal Data Date Milestone Status 16 March 2018 Test Trading Connectivity 22 March 2018 EARLY REFERENCE DATA FILES AVAILABLE ~ 22h00 Trading reference data client CSV files published Logon all Trading COMPIDs and reset passwords today (if necessary) Download early files and process data to prepare for the dress rehearsal 23 March 2018 Test Trading Connectivity again Logon all Trading COMPIDs 23 March March 2018 Post-trade reference data can be downloaded via the RTC API (EMAPI) FINAL REFERENCE DATA FILES ~22h00 the final Trading reference data client CSV files published RTC system available to connect and download and process data Download final files and REPLACE all early file data with these files for the dress rehearsal 22

23 23 General

24 General Commissions JSE commission solution and specifications published Q It is necessary to align how this aspect of the commissions solution is used in order to ensure that commissions can be efficiently processed between Members and by Clearing Members at EOD JSE is in consultation with software providers and is finalising proposed handling of the commission reference fields and how these should be populated A guidance note will be published today confirming the proposed handling of the commission reference fields Note: There are no changes to the JSE RTC API messages Collateral management JSE is in consultation with stakeholders to confirm implementation timeline and we hope to communicate revised timeline during April Transition Clients operating across the different Derivatives markets to be aware of transitional items during the period in which migrate remaining markets to the new ITaC technology (as follows on next slide) 24

25 ITaC Transitional Issues Take Note! New Instrument reference data standards see guidance note for details EDM and FXM will have ISINs on the tradable instruments, but the other derivative markets will not Four character Contract codes will still remain for the other derivative markets New Derivative Instrument Name will only be available for EDM and FXM Trading System New ITaC Firm Codes standards Nutron: CDM, IR and Bond markets continue with existing Firm alpha code (4) ITaC: EDM and FXM markets to use new Firm alpha code (3) as well as the new Production Identifier Code e.g. ABCXXXTM001 New ITaC Trader ID standards Nutron: CDM, IR and Bond markets continue with existing use of Dealer alpha codes ITaC: EDM and FXM markets to use new Trader IDs (5 numeric digits (0-9)) Once all markets migrated, Traders registered in the Equity Derivatives and Currency Derivatives Markets will have one common unique numeric Trader ID across all markets New TraderGroups for ITaC only for EDM and FXM Trading members 25

26 ITaC Transitional Issues Take Note! Clearing Daily Account Summary Reports: Equity Derivatives and Currency Derivatives (combined i.e. single report) RTC Interest rate Derivatives Nuclears Commodity Derivatives - Nuclears Trading Members to engage with their Clearing Members to understand how these will be delivered for all markets BDA Broker Code upload of derivatives data from new ITaC services will continue and be uploaded to existing BDA broker codes 26

27 Questions? Please refer all queries to the JSE Client Service Centre (CSC)